Shares of Advance Auto Parts Inc (NYSE:AAP) were rising in early trading on Friday, despite the company’s announcement of weak guidance.
- Here are some key analyst takeaways.
- DA Davidson analyst Michael Baker reaffirmed a Neutral rating, while reducing the price target from $65 to $63.
- Roth Capital Partners analyst Jack Weisenberger reiterated a Neutral rating and price target of $50.
Check out other analyst stock ratings.
DA Davidson: Advance Auto Parts' second-quarter results reflected that tariff-related inflation "are starting to flow through," Baker said. He added that 40% of the company's products have exposure to tariffs, "with a current blended average tariff rate of 30%."
Management expects tariffs to have a low-to-mid-single-digit impact in the back half of the year, the analyst stated. "AAP is in the early innings of their three-year turnaround plan, and continues to show trends in the right direction," he further wrote.
Roth Capital Partners: Advance Auto Parts reported same-store sales growth of 0.1%, with a decline in transaction count.
Trends improved sequentially in both the DIY and DIFM categories, Weisenberger said. The company's average ticket growth was a low single-digit rate. Tariff-related price adjustments implemented mid-quarter are mainly to blame.
Management reiterated their 2025 guidance, the analyst stated. "The turnaround initiatives are progressing well and ahead of schedule, however, there is plenty of work still required to hit management’s targets," Weisenberger added.
AAP Price Action: Shares of Advance Auto Parts had risen by 0.36% to $57.08 at the time of publication on Friday.
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